Drinks giant Diageo has offloaded 19 of its brands to Kentucky-based beverage company Sazerac for $550m.
The brands in question are largely unknown outside of the US, with the exception of Seagram’s.
Family-owned Sazerac will take over Seagram’s VO, Seagram’s 83, Seagram’s Five Star, Myers’s, Romana Sambuca, Yukon Jack, Booth’s, Goldschlager, Popov, Relska, The Club, Black Haus, Peligroso, Grind, Piehole, Parrot Bay, Stirrings, Scoresby and John Begg.
Diageo’s shareholders are expected to receive £340m in the form of a share buyback, after tax and transaction fees have been deducted.
Ivan Menezes, Diageo’s Chief Executive, said the sale would allow the company to focus more on its faster-growing “premium and above” brands in the US.
The deal should be completed early next year, subject to regulatory approval.
